Well, I bet on a co. this AM, VMIX, that already delivers the steak with the sizzle rather than what is mostly sizzle at the moment, HLTH--and I lost. At least for today. I made a rather large bet, and am down aprox. 10% for the day but decided to leave it on the table overnight and see what happens manana.
Will the market notice VMIX now? Reward it or...? Since VMIX is not related to the fad of the moment, online health, and the market is trying to go into a funk, my guess is that the reaction isn't going to be as dramatic as would have otherwise occurred a couple of weeks ago. We shall see.
<<Thursday May 20, 4:16 pm Eastern Time
Company Press Release
Valley Media Reports 1999 Fourth
Quarter and Fiscal Year-End Results
Fiscal 1999 Earnings Per Share Grew 57%, Sales Increased 52% And Internet Sales
Rose 503%
WOODLAND, Calif.--(BUSINESS WIRE)--May 20, 1999--Valley Media Inc. (Nasdaq:VMIX -
news), the largest independent full-line distributor of music and video entertainment products in the United
States, today announced its financial results for the fiscal year and quarter ending April 3, 1999.
For fiscal 1999, net income increased 69.2% from $2.6 million to $4.4 million and earnings per share
increased 57.1% from $0.49 to $0.77. Before an extraordinary item, net income for fiscal 1999 was $5.2
million and earnings per share were $0.89. Net sales for fiscal 1999 increased 52.4% from $583.5 million
to $889.0 million. Sales for Full-line Distribution, which serves traditional music, video and other retailers,
increased 28.4% from $520.5 million to $668.4 million. Sales for New Media, which supports Internet
retailers, saw a 503.0% increase from $30.3 million to $182.7 million. Independent Distribution, which
supports independent labels and studios, increased 20.4% from $45.7 million to $55.0 million.
Valley Media reported that fourth quarter net income increased 79.4% from $669,000 to $1.2 million and
fourth quarter earnings per share increased 61.5% from $0.13 to $0.21 over the same period one year
ago. Net sales for the fourth quarter of fiscal 1999 increased by 65.1% from $156.2 million to $257.9
million compared to the same period in fiscal 1998. Full-line Distribution sales increased 32.4% from
$135.0 million to $178.7 million, New Media sales increased 448.8% from $12.7 million to $69.7 million
and Independent Distribution sales increased 13.8% from $12.3 million to $14.0 million over last year's
fourth quarter.
''We are very pleased with our record financial results for the quarter and the year,'' commented CEO
Rob Cain. ''Fiscal 1999 was a record growth year for our New Media group. In addition to benefiting
from the spectacular growth of our established on-line customers, major new customers such as
Amazon.com (Nasdaq:AMZN - news), contributed significantly to our growth. It is exciting to see
traditional retailers starting to enjoy some success on the Internet as well. In fiscal 1999, DVD and deep
catalog video began to emerge as meaningful growth drivers. Here, we have been able to leverage our
deep catalog skills and to cross sell to our established audio and Internet retailers.''
Mr. Cain continued: ''While our New Media success has been dramatic, it is built on the foundation of our
core Full-line and Independent Distribution businesses. I am pleased that these groups continued to grow
faster than our industry. We offer our customers the most reliable access to the deepest selection in the
industry, buttressed by a growing array of data products and other value-added services.''
''We achieved our record profitability in spite of significant expenses associated with investing in our future.
The startup of the Company's new state-of-the-art 330,000 square foot Louisville distribution center, the
write-off of deferred offering costs, our continued investment in the development of new data products and
our consolidation of a number of video facilities acquired with Star Video during fiscal 1998 added
materially to selling, general and administrative expenses,'' said Mr. Cain.
Valley Media is a distributor of music, video and DVD product offering full-line distribution, Internet
fulfillment, independent distribution, publications, and proprietary database products. Valley Media
operates facilities in seven states with primary distribution facilities in Louisville, KY and at its Woodland,
CA corporate headquarters. Additional information is available at www.valley-media.com.
This press release may contain forward-looking statements made pursuant to the ''safe harbor'' provisions
of the Private Securities Litigation Reform Act of 1995. These statements are identified by words such as
''will'', ''expects'', ''anticipates'', ''plans'', or ''intends'' and by other descriptions of future circumstances
or conditions. Actual results may differ materially from those projected in these forward-looking
statements. Factors that could affect Valley Media's actual results include, without limitation, risks and
uncertainties related to the following factors: intense competition, customers' ability or preference to buy
product direct, facilities and systems integration upgrades, new electronic delivery technologies and
copyright or royalty disputes. More information about these and other factors that could negatively affect
Valley Media's financial performance and the value of its common stock is contained in Valley Media's
registration statement on Form S-1, which is on file with the Securities and Exchange Commission. Persons
reviewing Valley's Form S-1 should pay particular attention to the risks and uncertainties discussed in the
sections titled ''Risk Factors'' and ''Management's Discussion and Analysis of Financial Condition and
Results of Operations.''
>>
Jim
P.S. I left the tables off. You can find them on Yahoo, VMIX News.
P.S.Tigerinvestor called the earnings pretty close yesterday. I'd sure like to know who was selling into the anticipated news today. Those who live by day-trading can die by day-trading. |
